Perodua Sees Challenges Ahead, Supports Initiatives To Sustain Automotive Industry

Despite holding about 41% of the Malaysia market, Perodua sees big challenges ahead for the local automotive industry. As such, Perodua is voicing its support for government initiatives to help sustain the automotive industry. Perodua made the statement following a recent announcement by the Malaysia Automotive, Robotics and IoT Institute (MARii) on the sustainability of Malaysia’s automotive industry amidst the ongoing COVID-19 situation.

Challenging Times

According to reports, MARii estimates a 28% drop in new car sales this year because of the Movement Control Order (MCO) brought on by the COVID-19 pandemic. MARii stated that a minimum 500,000-unit total industry volume is needed in 2020 for automotive businesses’ continued survival.

Among the incentives MARii outlined to stimulate demand are a temporary waiver on down payments, reduced loan interest rates and joint subsidies between carmakers and the government for road tax and insurance for a limited time period.

“It is indeed a challenging time for all of us, however, Perodua is confident that with the government’s collaboration, the industry as well as its ecosystem of suppliers and dealers will be able to weather the storm together,” said Perodua President and Chief Executive Officer, Dato’ Zainal Abidin Ahmad.

Perodua Gives Support

“Perodua is in full support of the government’s aim to fortify Malaysia’s automotive industry in these trying times, and its various initiatives to achieve that aim,” said Dato’ Zainal.

In the first five months of 2020, Perodua sold 52,920 vehicles to give it a 41% market share. Total industry volume year-to-date is an estimated 129,401 units.

“As Malaysia’s biggest carmaker by volume, we are eager and ready to step forward and work with the government to ensure the industry’s continued survival in this difficult time,” he added.

All current Perodua models have over 90% local content. Last year, Perodua purchased RM5.4 billion worth of components from Malaysian suppliers.

“Perodua is also doing its part to sustain its vast ecosystem of suppliers and dealers. Besides our volume, we assist and support them through investments, purchases and advance purchases, longer credit terms as well as various operational transformation initiatives and development programmes,” Dato’ Zainal said.